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VAU - Vault Minerals

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From Market Matters morning report
Not Held

Vault Minerals (VAU) 39.5c​

Vault Minerals (VAU) is Red 5 (RED) reincarnated on the ASX; it’s the same $2.7bn gold producer and explorer based in WA. In August, the company’s FY24 results were solid, but the stock has lagged its peers through 2024:
  • Revenue of $620mn flowed through to an underlying profit of $48.5mn, and for FY25, guidance is 390-430K oz at an AISC of A$2,250-2,540.
The company has transitioned after Red5 (RED) merged with Silver Lake Resources (SLR) to become a larger entity that should benefit from scale; VAU has a stronger balance sheet and is expected to enjoy cost savings and improved mining rates. Over the coming years, we can see more M&A activity in the gold space. We hold VAU in our Emerging Companies Portfolio.
  • We like VAU and can see some performance catch-up over the coming months.
MM is cautiously bullish VAU

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Vault Minerals (VAU)
LAST UPDATED 01/11/2024 09:00
 
Nov 24 update: Still waiting for the market to notice this one. Unless it knows and doesn't care.

Price continues to be weaker than the gold miners ETF - GDX. There is a minor and very recent indication that VAU is gaining support as it hasn't made a new low like GDX. (Note: The recent weakness in GDX may be due to the large cap NEM's poor recent performance.)

New CEO has done the roadshow, now needs to kick VAU's production up a gear.

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Looks like another to bank next year.
 
With the gold price going up and uncertainty in the world Vault is a solid play.

Share price is rising as the aus dollar goes down

Production of around 400k oz per year makes it a possible takeover target by one of the gold giants
 
craigj said:
With the gold price going up and uncertainty in the world Vault is a solid play.

Share price is rising as the aus dollar goes down

Production of around 400k oz per year makes it a possible takeover target by one of the gold giants
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problem for Vault is its crappy hedging.
They will miss out on some the upside of gold price increases because of it.
Mick
 
I agree. VAU needs to consider a share consolidation (5:1 or 10:1). They're a mid tier gold producer now.
 
Tyre Kicker said:
Yeah, we’ll there’s literally billions of shares to trade.
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6.80 Billion shares.

Screenshot_20250520_081157_CommSec~2.jpg

so it's a $3B company.

looks like they've been lucky with the hedges

"Today; a diversified, long life, intermediate gold business.
Underpinned by a strategic 10+ years asset in the prolific Leonora district and 5+ years at Mount Monger"
 
Good to see the share price bounce off the 40c level in recent week

Company has a lot of cash and a lot of tax credits
 
After offloading my ALK, I have joined the list of Vault shareholders.
Not a lot of worthwhile (to me) goldies to pick from in OZ, I figured this was ok in the short to medium term.
Wary of the already posted comments ny others about the large number of shares on issue, the capex required to build the DEG mines, but reckoning on enough gold seekers to make some profits.
Mick
 
share price very much range bound at the moment at 40c is the bottom of the range for the past quarter
 
mullokintyre said:
After offloading my ALK, I have joined the list of Vault shareholders.
Not a lot of worthwhile (to me) goldies to pick from in OZ, I figured this was ok in the short to medium term.
Wary of the already posted comments ny others about the large number of shares on issue, the capex required to build the DEG mines, but reckoning on enough gold seekers to make some profits.
Mick
Click to expand...
took my profits on Vault at the open this morning.
25% profit in a bit over two months is more than enough for me.
The fact there was no guidance issued with the annual suggests that they holding it back because it may not be great.
Announced a share buyback, removal of the CEO, all seemed good news to the market.
I am worried there will be a sucker punch.
Mick
 
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